AROUND THE GULF
Latest developments across the region
Bahrain’s new floating LNG import and re-gasification terminal will receive its first cargo in February or March 2019 from ADNOC, according to Bahrain’s oil minister. All cargoes will be bought from the spot market, and no other cargoes have been awarded yet. The Bahrain LNG project has a capacity of 0.8 bcf per day, and the country consumes approximately 1.5 bcf per day.
Almost $400bn will be spent on Saudi Aramco’s In Kingdom Total Value Add (IKTVA) program in the next 10 years. IKTVA is an initiative aiming to develop Saudi Arabia’s energy infrastructure and to develop its local workforce. As part of this program, 360,000 trainees will be taught at 30 Saudi Aramco training centres and will be prepared to enter the labor market by 2030.
ADNOC will invest $1.4bn to expand its giant Bu Hasa field, increasing production from 550,000 barrels of oil per day (bpd) to 650,000 bpd. This is part of the company’s plan to increase oil production capacity to 4mbpd by 2020. ADNOC subsidiary ADNOC Onshore awarded an EPC contract to Tecnicas Reunidas to upgrade to field. Work is expected to take 39 months.
Kuwait Oil Company has reportedly awarded contracts worth $1.3bn for the construction of 86 rigs to local firms and Chinese, American and Italian companies. Kuwaiti newspaper Alanba reported that KOC CEO Jamal Jaafar said this was part of the company’s strategy to produce 3.65mn barrels of oil per day. The winning companies were not disclosed, but Jaafar said that 12 companies prequalified.
Oman Oil Co and Oman Oil Refineries and Petroleum Industries Co (ORPIC) merged their downstream businesses and appointed Musab al-mahruqi as the CEO of the new entity. He was the chief executive of ORPIC from 2010 until 2016, and will oversee the merger. Mohammed bin Hamed Al Rumhy, chairman of OOC & Orpic, said the merger “provides a solid platform for our ambitious growth plans.”
The US government granted Iraq a 45-day waiver from Iran sanctions, according to the US Embassy in Iraq. “This relief gives Iraq time to start taking steps towards energy independence,” the embassy said in a video announcing the waiver. The country will be able to import natural gas and electricity from
Iran during this period, provided it does not pay for these imports in US dollars.